Nathan Thom's catering business (Nathan Catering) has just completed its first month of operations (January 20X5), and
Question:
Nathan Thom's catering business (Nathan Catering) has just completed its first month of operations (January 20X5), and he is trying to put a balance sheet together. He provides you with the following information.
1. Cash - the bank says he has $1,200 in his account. However, Nathan knows that checks #115 and #116 have not cleared the bank. They were written for $120 and $85, respectively.
2. Several customers have not paid amounts owed to Nathan Catering as follows:
Adam Base $350
Ben Fence $200
Carl Home $420
Della Line $148
Ernst Plate $390
3. The business purchased $12,000 of food during January 20X5 and the physical inventory revealed that $2,000 of food is on hand on January 31, 20X5.
4. The business owed three suppliers at the end of January 20X5 as follows:
Full Bones, Inc. $950
Good Foods $480
Harry's Beverage $200
Required: Prepare a balance sheet for January 31, 20X5 for Nathan Catering.
